Up until December 2016 the state banks will provide loans at 0% interest to the agricultural sector and there will be a tax deduction on net taxable income of up to 30% of the investments made in the period.
From a statement issued by the Presidency of Panama:
"...The president said the government will facilitate and promote investment in the agricultural sector, with 0% interest loans from August 1 until December 31, 2016. In addition, a new tax deduction on net taxable income will be created, of up to 30% of the total amount of new investment in the agricultural sector, which is made within this period.
Only 2.8% of the loan portfolio is for the private sector in agriculture.
The figure corresponds to $223 million out of the $7.97 billion in private sector lending by the banks in Honduras, according to central bank data, and is a significant decrease compared to the end of 2011, when the rate was 4.9% .
The appropriation of productive land by peasant groups has caused the rejection of $8.2 million in loans requested by agribusiness.
The invasion of land housing mills and palm oil farms has increased credit risk. President by law to the Honduran Association of Sugar Producers (AHPA), Robert Vinelli said that because of the increased risk, banks will have more requirements and there will be an increase in borrowing costs because of uncertainty.
Improved grain prices encouraged banks to increase their loan portfolio for coffee production to about $56 million.
The bank approved $56 million for coffee planting in El Salvador between January and November 2011, 29.8% more than the same period in 2010 ($43.24 million), revealed the Superintendency of the Financial System (SSF).
Better prospects for coffee and maize production compared to 2010, are generating a sustained demand for credit in El Salvador for these sectors.
According to information from Banco de Fomento Agropecuario (BFA) from January 2011 until July 13, 201 loans were granted to the coffee sector, totaling $11.03 million, of which 60% was allocated to maintenance .
Procredit Bank will provide financing to agricultural and commercial sectors.
Consolidation in the market and granting loans to new segments such as the housing and agriculture sectors, are part of the objectives of the representatives of Procredit Bank, which has opened its twenty-fifth branch in the country.
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Operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama
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XAGRO S.A. Announced that they have signed a purchase agreement with Jam LLC to buy 5,000 MT of red beans from China that will be sold to importers throughout Central America to help ease market pressure and lower the high prices caused by recent shortages.
As part of the Agritrade Platform, Guatemala will participate for the 27th time in PMA Fresh Summit, the most important international trade show and convention of fruits and vegetables in the United States, which will take place at Anaheim Convention Center, California from October 17th to 19th.